0423 GMT - IREIT Global's distributions are likely to be hit by upcoming redevelopment of its biggest asset, Berlin Campus, RHB Research's Vijay Natarajan says in a research report. This move comes as Europe's largest pension fund will be vacating Berlin Campus following its lease expiry at end-December 2024, the analyst notes. Capital expenditure is estimated around 130 million euro to 160 million euros, which will probably be funded via debt and possible asset disposals. RHB cuts its 2025 distribution-per-unit forecast for the REIT by 34% and lowers the unit's target price to S$0.34 from S$0.40. However, this move provides the best path for the REIT to unlock long-term value and diversify its income base, says RHB, which maintains its buy rating. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
January 01, 2025 23:23 ET (04:23 GMT)
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